Energy Transfer (ET) has outperformed the broader market in 2026, gaining 19% year-to-date while most stocks have experienced sharp declines. The stock has remained relatively stable, with a maximum drawdown of 8.04% in early June, and has recovered nearly all of its losses, currently trading within 3% of its 52-week high. This performance highlights the resilience of ET’s fee-based business model.

Operating Income and Revenue Growth in Q1 2026

According to TIKR.com. Energy Transfer reported total revenue of $27.77 billion in Q1 2026, a significant 32% increase year-over-year, though Operating income reached $2.98 billion, the highest in the trailing eight quarters, representing a 20% year-over-year increase. However, operating margin came in at 11%, down from 12% in the year-ago period, indicating margin compression due to rising commodity-linked costs.

Gross profit grew 19% year-over-year but with a gross margin of 18%, showing that costs increased faster than revenue — the company’s operating margin has remained within a range of 9% to 12% over the past eight quarters, despite the surge in revenue. This margin trend suggests that while volume is boosting absolute earnings, margin expansion will require sustained high-volume conditions.

Comparisons With Peers

Energy Transfer lags behind key peers in operating margin; Kinder Morgan (KMI) reported an operating margin of 30% in Q1 2026, nearly three times higher than Energy Transfer’s 11%. ONEOK (OKE) posted an operating margin of 15% in the same period. The gap is largely structural. As Kinder Morgan’s business is built around fee-based interstate gas pipelines with lower commodity exposure, giving it a more favorable cost structure.

Energy Transfer’s operations include 140,000 miles of pipelines across 44 states, transporting natural gas, crude oil, and refined products; the company’s cash flow primarily comes from fixed-fee contracts with producers and utilities, making volume—rather than price,the key driver of earnings. This business model insulates Energy Transfer from the volatility of commodity prices and positions it well in a period of growing natural gas demand.

Market Stability and Future Outlook

Throughout 2026, the stock has rarely dipped below a 5% drawdown, and for most of the year through May, it stayed above a -5% loss. Energy Transfer’s stable infrastructure model has proven resilient in a volatile market. This low volatility has made it an attractive option for investors seeking less exposure to market swings.

TIKR.com sets a $26 price target for Energy Transfer stock, based on its ability to close the gap from its current price of $19. The company’s long-term growth potential is tied to its capacity to maintain high-volume operations while managing costs effectively. Analysts suggest that if the high-volume environment continues, Energy Transfer could see further margin expansion and earnings growth.